Advances in Industrial & Labor Relations

ISBN: 978-0-76231-152-1, eISBN: 978-1-84950-305-1

ISSN: 0742-6186

Publication date: 30 December 2004


Traditionally, hiring indefinite duration contract employees has been the dominant method used by U.S. organizations to staff their labor needs. Indefinite duration contract employees, hereafter referred to as “regular” employees, have three defining characteristics: (1) they are hired directly as employees of the organization whose work they perform; (2) the duration of the employment relationship is unspecified, with a mutual expectation that it will continue as long as it is mutually satisfactory; and (3) the employment relationship provides ongoing – as opposed to intermittent – work. When their demand for labor increases, organizations staffed exclusively by regular employees can respond by having their employees work overtime or by hiring additional regular employees. Conversely, when their demand for labor decreases, such organizations can either maintain “inventories” of excess regular employees or reduce labor inputs by laying-off or reducing the work hours of regular employees.


Gramm, C. and Schnell, J. (2004), "THE EFFECTS OF USING ALTERNATIVE TYPES OF STAFFING ARRANGEMENTS", Advances in Industrial & Labor Relations (Advances in Industrial & Labor Relations, Vol. 13), Emerald Group Publishing Limited, Bingley, pp. 27-68.

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